INCREASES IN FOOD PRICES BY HAWKERS

Mr Yeo Guat Kwang asked the Minister for the Environment what actions are being taken to prevent hawkers from taking unwarranted advantage of the recent increases in water charges and public transport fares to increase their prices.

The Minister for the Environment (Mr Yeo Cheow Tong): Sir, the food retailing business is a highly competitive one. There are some 20,000 stalls in hawker centres and another 12,000 stalls in eating houses and other private establishments. Competition between this large number of stalls has helped to keep food prices reasonable and affordable. Most hawkers are good businessmen and know from experience that overcharging will result in lower demand and loss of goodwill.

Hawkers are required to display price tags at their stalls. Consumers can decide for themselves whether or not to patronise a particular stall. This is the best way to ensure that food prices remain reasonable and prevent any unscrupulous hawker from taking unwarranted advantage of the recent increases in water charges and public transport fares.

However, we must also be fair to hawkers. As our economy continues to grow at a healthy pace, Singapore workers will continue to enjoy good annual wage increases. Hawkers, too, would like to have their earnings keep pace with that of other Singaporeans. We must therefore not begrudge them their price increases, provided these are kept reasonable.